Goods And Service Tax GST Presented By Shivam

Goods And Service Tax (GST) Presented By Shivam Rastogi

What is Tax �Taxes are generally an involuntary fee levied on individuals or corporations that is enforced by a government entity, whether local, regional or national in order to finance government activities. In economics, taxes fall on whomever pays the burden of the tax, whether this is the entity being taxed, like a business, or the end consumers of the business's goods.

History Of Taxes �In India the Tax was introduced for the first time in 1860 by Sir James Wilson to meet the losses sustained by the Government on account of military mutiny in 1857. In 1918 a new act was passed which was replaced by another Act which is passed on 1922. �In 1962 an Income Tax Act was passed which enforces the Government in power to pass the Union Budget every year

Types of Taxes �Direct Tax �Indirect Tax

Direct Tax � Direct taxes are those which are paid directly to the government by the taxpayer. These taxes are not paid deducted and paid on behalf of the taxpayer. It’s imposed on the people and organizations directly by the government.

Indirect Tax �Indirect taxes are called so because they are collected indirectly from consumers by the government through intermediaries, who are the first payers of the tax to the government. These taxes are different from direct taxes such as income tax which is collected directly from taxpayers. Indirect taxes include taxes such as Sales Tax, service, tax, VAT etc.

Examples of Direct Tax �Income tax �Wealth tax �Corporation tax

Examples of Indirect Tax �Import Tax �Fuel Tax �Liquor Tax �Cigarettes Tax, etc

Importance of Direct Tax �Direct taxes are paid directly by taxpayers to the Government �Burden of taxes cannot be shifted �It can help reduce inflation �Direct Tax is progressive in nature

Importance of Indirect Tax �Indirect tax is ultimately paid for by the endconsumer of goods and services. �Burden of taxes can be shifted �It enhances inflation �It is regressive �Lesser Administrative cost is involved

What is GST �Goods and Service Tax (GST) is an indirect tax applicable throughout India which replaced multiple cascading taxes levied by the central and state governments. It was introduced as The Constitution (One Hundred and First Amendment) Act 2017, [1] following the passage of Constitution 122 nd Amendment Bill. The GST is governed by a GST Council and its Chairman is the Finance Minister of India. Under GST, goods and services are taxed at the following rates, 0%, 5%, 12% , 18% and 28%

GST Tax Slabs � 0% � 5% � 12% � 18% � 28%

Products Under 0% Tax Slabs �There will be no tax on essential and daily usage commodities like meat, fresh vegetables, natural honey, jaggery, prasadam, kumkum, bindi, pappad and contraceptives. Also, Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom etc have been exempt from GST levy.

Products Under 5% Tax Slabs �Daily-use items like sugar, tea, coffee (barring instant coffee) and edible oil, pizza bread, sevaiya, condensed milk, frozen vegetables will attract 5 percent levy. The 5% slab will also attract ‘Mithai’ or sweets (like gulab jamun. Rasgulla etc. )

Products Under 12%Tax Slab �Frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine, and cell phones will be under 12 per cent tax slab

Products Under 18% Tax Slab �envelopes �tampons �notebooks �steel products �printed circuits �camera �speakers and monitors �Kajal pencil sticks �Headgear and parts thereof, �Aluminium foil, �Weighing Machinery [other than electric or electronic weighing machinery], �Printers [other than multifunction printers], etc

Products under 28% Tax Slab �Sugar and sugar confectionery �Cocoa and cocoa preparations �Preparations of cereals, flour, starch or milk; pastrycooks’ products �Miscellaneous edible preparations �Pan masala �Beverages, spirit and vinegar �Tobacco and manufactured tobacco substitutes �Salt; sulphur; earths and stone; plastering materials, lime and cement �Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes �Tanning or dyeing extracts; tannins and their derivatives;

Importance of GST � The tax structure will be made lean and simple � The entire Indian market will be a unified market which may translate into lower business costs. It can facilitate seamless movement of goods across states and reduce the transaction costs of businesses. � It is good for export oriented businesses. Because it is not applied for goods/services which are exported out of India. � In the long run, the lower tax burden could translate into lower prices on goods for consumers. � The Suppliers, manufacturers, wholesalers and retailers are able to recover GST incurred on input costs as tax credits. This reduces the cost of doing business, thus enabling fairer prices for consumers. � It can bring more transparency and better compliance. � Number of departments (tax departments) will reduce which in turn may lead to less corruption � More business entities will come under the tax system thus widening the tax base. This may lead to better and more tax revenue collections. � Companies which are under unorganized sector will come under tax regime.

Thank. You